With the stroke of a pen—and a whopping $1.1 billion payment—NorthStar Realty Finance Corp. will soon become the owner of a 7,000-room portfolio of upscale extended stay and select service hotels. The REIT has entered into a definitive agreement to buy a collection of 52 lodging properties from Inland American Real Estate Trust.NorthStar will acquire the assets in a joint venture with Chatham Lodging Trust where NorthStar will have a 90 percent ownership stake, leaving Chatham with a 10 percent minority interest. In terms of financing the acquisition, neither company is sitting on a billion dollars; they expect to secure non-recourse financing for as much as 75 percent of the purchase price. For its part, Inland American anticipates walking away with approximately $480 million of net proceeds, which will be utilized to further the growth of its student housing and retail portfolios.“This transaction will accomplish important goals for both parties,” Ben Carlos Thypin, director of market analysis with data and analytics firm Real Capital Analytics, told Commercial Property Executive. “Northstar will continue to gain economies of scale by growing their hospitality portfolio by over 50% while Inland will be able to provide its shareholders with a big win and focus on the spin-off of its remaining hospitality assets.”Read More: http://www.cpexecutive.com/property-types/hospitality/northstar-to-buy-7000-room-hotel-portfolio-from-inland-american-for-1-1b/1004104051.html

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Ben Carlos Thypin

I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.